• US cuts tariffs on small packages from China to 54%, impacting e-commerce firms.
• 90-day trade truce allows businesses to adapt and manage shipping costs.
• Hong Kong exporters urged to take advantage of the temporary tariff suspension.
• Trade experts predict a surge in exports as companies rush to ship goods.
• New tariffs still pose a challenge for e-commerce firms like Temu and Shein.

In a significant policy shift, the Trump administration has cut the tariff rate on small packages from China to 54%, down from 120% following a recent trade truce between the US and China. This change is particularly beneficial for e-commerce giants like Temu and Shein, which had relied on the de minimis exemption that allowed low-value goods to be imported without duties up to $800, significantly boosting their business models previously, according to SCMP and The Hill.

The newly established 54% tariff applies to goods shipped from China and Hong Kong and took effect on May 14. Additionally, a flat fee of $100 per package remains, effectively providing a window for retailers to adjust to the changed landscape, as previous tariffs had soared as high as 145%. The 90-day suspension of heightened tariffs is seen as a critical period for businesses to adapt and strategize their import logistics, according to BBC and SCMP.

Hong Kong manufacturers are now encouraged to seize this opportunity to export goods, potentially leading to a significant increase in export volumes. Experts suggest that logistical aspects are urgent as businesses rush to ship inventory ahead of the major shopping seasons, emphasizing that "the pause means US importers can still ensure sufficient goods for the Thanksgiving and Christmas shopping season," according to SCMP and SCMP.

Despite the positive outlook, some traders warn of challenges ahead. Tariffs on small packages, while reduced, still remain a burden, and shipping costs may rise due to increased demand for freight services as businesses prepare for a potential return to higher tariffs post-truce. "Most of Hong Kong e-commerce platforms had previously suspended shipments," said Gary Lau of the Hong Kong Association of Freight Forwarding and Logistics, while John Lee of Hong Kong emphasized the need for ongoing diversifications, according to SCMP, The Hill, and NY Times.